Egypt’s Prime Minister Mostafa Madbouly announced that the country intends to sell shares in at least 32 state-owned companies by the end of March 2024, reviving plans that have largely remained dormant for years as the nation’s financial problems grew.
The announcement comes as the country seeks to reduce the government’s economic footprint.
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A share in each of the three renowned banks, Banque du Caire, United Bank of Egypt, and Arab African International Bank, is among the scheduled sales. Additionally up for sale are hotels, industrial and agricultural concerns, as well as insurance, electricity, and energy companies.
Madbouly said following a cabinet meeting that the first stakes will be sold by the end of March and a quarter by the end of June. Over the following year, more firms might be included on the list.
Many of the stakes, including those in the three banks, were to be sold as early as 2016, but the program was postponed due to economic downturns, the epidemic, and Russia’s invasion of Ukraine.
Egypt agreed to the sales when it concluded a $3 billion rescue plan with the International Monetary Fund (IMF) in December. Proceeds will be used to cover financial shortfalls during the four-year IMF program.
The size of the assets that will be offered was not mentioned by Madbouly, but in recent years, the government has been reluctant to give up majority shares.
Shares in a number of companies including Paints and Chemical Industries Co (Pachin), Port Said Containers And Cargo Handling Co., and Damietta Container and Cargo Handling Company, that are currently publicly traded, will be sold.
Furthermore, there are shares in at least two firms held by the military’s National Service Projects Organization: bottled mineral water producer National Co. for Natural Water in Siwa and Watanya Petrol, which operates a chain of gas stations (SAFI).
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